Council covers cost of yard for Supercars' use for 18 months after race

Infrastructure for the departing V8 Supercars could stay at the Frankton yard for more than a year after the final race, at ratepayers' expense. Photo / Christine Cornege

V8 race infrastructure could stay in Hamilton for more than a year after the final race under a deal with the promoter which gives rent-free use of a Frankton yard.

New details of the termination agreement signed between the city council and V8 Supercars Australia in September have emerged.

The promoter was given the use of the Empire St storage yard at the council's cost from April 2012 to November 30, 2013.

As part of the exit deal, the council sold the race infrastructure such as concrete barriers, pit lane structure, fencing and tyre bundles to the Australian group for $1.2 million.

The total cost of the infrastructure to the city was $18 million and they have a book value of $5 million.

At the announcement of the deal, V8 Supercars said storing the infrastructure would come at a significant cost to them - with no mention that ratepayers could be picking up the tab for the first 18 months.

The council holds a lease with KiwiRail for the buildings and yard until 2015/16 but the parties have been in discussions about plans for the site.

If the lease cannot be cancelled, the council plans to sub-lease the buildings after the 2012 race.

KiwiRail spokeswoman Kimberley Brady said: "We briefly communicated with the council regarding the site's future use a few weeks ago, but there has been no further discussion."

Hamilton City Council property portfolio manager Nicolas Wells said there was a possibility of storing the infrastructure in a way so that some of the area could be available to a new lessee.

He said V8 Supercars wanted to "minimise asset movements", so it was possible that after next year's race the assets would be kept kept at a different site in another city, "assuming V8 Supercars has identified an alternative venue for the race".

The council also pays a rent of $23,300 a year to KiwiRail for the King St/High St runoff in a lease expiring on March 31 next year, and $15,620 a year for the rail corridor strip in leases expiring on March 31, 2015.

V8 Supercars spokesman Sam Heard said the material could be moved from the site before November 2013. This is likely to be dependent on securing a new venue which the organisers are still working on.

V8 Supercars had been in talks about moving the race to Whenuapai Air Base in Auckland from 2013. It says it will cost $1./2 million to move the infrastructure to Auckland.

Presale tickets for past buyers for the final Hamilton race on April 20-22 go on sale today and general sales start on Monday.